It is also alleged to have channelled its funds through a bank account belonging to a company controlled by Ms Booth's husband, Sohale Ahmed.

Ms Booth is also a former director of the company which, according to Companies House records, is in the process of being dissolved.

Lauren BoothCredit:
Ken McKay/Rex Features

Ms Booth, the sister-in-law of Tony Blair, the former prime minister, trained as an actress before switching to the media world, working as a gossip columnist and feature writer. She appeared as a contestant on the reality television programme I'm a Celebrity Get Me Out of Here!

In 2008, she became active in Palestinian issues after spending time in Gaza for the Iranian network Press TV and converted to Islam two years later.

“The Commission considers the concerns it has identified to be so serious that it opened a statutory inquiry”

Charity Commission statement

On its website, which was no longer operating last night, the charity described itself as an organisation dedicated to assisting "reverts to Islam" - a reference to the idea that those who convert are in fact returning to their true state - and other Muslim families.

But despite being registered since 2013, the charity has yet to file any accounts to the Charity Commission, prompting a visit from the regulator's inspection officials in January. As a result of what they found, the Commission has begun a full-scale statutory inquiry, a step that can lead to groups being struck off the register.

“It identified further concerns about the charity’s use of a bank account of another, non-charitable, company and how these funds had been used and accounted for”

Charity Commission

"The visit identified serious regulatory concerns regarding how the charity is being managed including poor governance, risks to the charity's property due to poor financial management and failures by the trustees to conduct proper due diligence and monitoring of its partners," the Commission said in a statement.

"The visit also identified that the charity was unable to provide records to evidence expenditure of over £70,000."

It added that it had "identified further concerns about the charity's use of a bank account of another, non-charitable, company and how these funds had been used and accounted for".

"The Commission considers the concerns it has identified to be so serious that it opened a statutory inquiry and directed the trustees to provide information including the charity's activities, financial controls and an explanation as to the trustees's continued failure to file the charity's statutory annual returns," a statement said.

"The Commission has also made an order to restrict transactions or payments that the charity may enter into without the commission's prior written approval."